JK lnvesto Trade (India) Limited (JKIT), an associate company of Raymond, has entered into an agreement for sale (AFS) for its 20 acres Thane property with Elpis Ventures Private Limited, an affiliate of Virtuous Retail South Asia (VRSA) Pte. Ltd for ₹700 crore.
“The land parcel at Raymond Junction adjoining the Singhania School has a significant advantage in terms of its locationand this deal is seen to be iconic as it will bring in significant commercial development in Thane,” said a company statement adding that the deal is subject to payment of taxes, cost of approvals, as applicable and terms & conditions set out in the AFS.
Commenting on the development, Gautam Hari Singhania, CMD, Raymond Ltd., said, “The sale of JKIT land parcel is a major step towards our strategy of asset monetisation and value creation for our shareholders. This land deal, which is a large FDI in real estate in Thane, will bring the much required commercial and retail development and will lead to job creation.” Raymond shares rose 10.01% to ₹601.85 on Wednesday, valuing the company at ₹3,694.21 crore.
“Given the fact that our residential project, ‘Raymond Realty’ is underway, this development will ensure a vibrant real estate eco-system within its vicinity offering home buyers a better choice. Virtuous Retail South Asia is known for developing high performance retail environments. Overall this landmark deal would give the much required impetus to Thane’s real estate development in terms of residential, retail and commercial space,” Mr. Singhania added.
On the acquisition, Sid Yog, founder and chairman, VRSA, said, “Prime land parcels of this size seldom trade, especially in major metropolitan markets like Mumbai. We have been waiting patiently for the ideal opportunity to expand our portfolio in the Mumbai region.”
Sponsored by the emerging markets investment firm The Xander Group Inc., Virtuous Retail South Asia develops and manages community-oriented retail and lifestyle centers across India.
“We envision a vibrant, 24/7, people-centric development that will draw upon the heritage and history of the region, bolster tourism, create thousands of new jobs, and make a major contribution to the local economy and community,” Mr. Yog added.
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